Montreal, PQ- October 29, 1999 - Paladin Labs Inc. ("Paladin") (VSE:PLB) today announced its results for the third quarter ended September 30, 1999. Cumulative revenues for the third quarter were $8,431,709, an increase of 144% over revenues of $3,450,250 for the comparable period in the previous year.

Paladin recorded net income of $1,820,351, or $0.20 per share, for the nine month period ended September 30, 1999, compared to $1,263,348, or $0.23 per share for the same period a year earlier. The magnitude of issued and outstanding shares has increased by 65% during the period under comparison, while the earnings per share have declined by a factor of only 13%.

The revenue growth was lead by increased sales of existing products and the introduction of a number of new products. "We are pleased with our recent sales of new products including Ridaura( (rheumatoid arthritis), Suplasyn( (osteoarthritis), Cystistat( (interstitial cystitis), and Pacis( (bladder cancer)," stated Mark Beaudet, Vice-President.

Selling and administrative expenses amounted to $3,010,848, with Research and Development expense totaling $517,860, for the period ended September 30, 1999. Corresponding amounts for the same period last year were $682,930 and $683,975 respectively.

The increase in selling and administrative expenses is due to Paladin having successfully acquired and launched eleven new products over the last twelve months.

Jonathan Goodman, Paladin's President and CEO stated, " We are extremely pleased to have augmented our product line so significantly in the past year while concurrently increasing our profitability. We have also further enriched our pipeline, which will continue to fuel our growth in the coming years."

POSITIVE RESEARCH FINDINGS

Paladin recently acquired the exclusive marketing and distribution rights for Synsorb Cd^® from Synsorb Biotech Inc. A Phase II clinical trial for Synsorb Cd^® recently reached an accelerated conclusion after an interim analysis of the data showed statistically compelling evidence of efficacy at the high dose. The rate of recurrence for the patients receiving the high dose of Synsorb Cd^® was 13%, compared to 63.6% for patients receiving placebo. The trial was halted and planning for Phase III testing is currently underway.

Synsorb Cd^® is designed to treat the recurrent form of Clostridium difficile-associated diarrhea (CDAD), a common hospital borne infection that is associated with extended antibiotic therapy.

Paladin Labs Inc. is a public company whose shares trade on the Vancouver Stock Exchange under the symbol PLB.

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About Paladin Labs Inc.

Paladin Labs, headquartered in Montreal, Quebec is a Canadian developer, marketer and distributor of innovative pharmaceuticals, currently offering products in urology, dermatology, rheumatology and other specialty markets. For more information about Paladin, please visit the Paladin Web Site at www.paladin-labs.com or send e-mail to ir@paladin-labs.com.

This news release may contain forward-looking statements or predictions. These statements represent our judgement as of this date and are subject to risks and uncertainties that could cause actual results or events to differ materially from those expressed in such forward-looking statements Potential risks and uncertainties include, without limitation, those associated with product development, clinical trials, future revenues and profitability, and obtaining marketing approval. These documents contain and identify important factors that could cause the actual results to differ materially from those contained in the projections or forward-looking statements.

          The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements or predictions. These statements represent our judgement as of this date and are subject to risks and uncertainties that could cause actual results or events to differ materially from those expressed in such forward-looking statements. Potential risks and uncertainties include, without limitation, those associated with product development, clinical trials, future revenues and profitability, and obtaining marketing approval.

Paladin Labs Inc.
6111 Royalmount Ave., bureau 102
Montreal, Quebec, H4P 2T4
Tel.: (514) 340-1112
Fax: (514) 344-4675